New Straits Times
KUALA LUMPUR: The 40 sen per litre excise duty on sugary drinks does not affect the regular granulated sugar used by most people.
Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh said business owners should not use the rise in excise duty on sugary drinks as an excuse to raise the prices of food and beverages in their establishments.
She clarified that the price of regular sugar, commonly used by the general public for food preparation, remains unchanged.
"It's the same sugar used to make drinks in restaurants and eateries, so it has no connection to the sugar tax mentioned in the 2025 Budget.
"The sugar tax mentioned refers to products with high sugar content, such as canned drinks," she said in a Utusan Malaysia report.
In the 2025 Budget, the government announced a phased increase in excise duty on sugary drinks starting Jan 1 next year.
Prime Minister Datuk Seri Anwar Ibrahim said that the excise duty rate of 40 sen per litre was introduced to combat Malaysia's status as one of the most obese countries in Southeast Asia, with sugar being a major contributor to non-communicable diseases.
Among the drinks affected by the excise duty increase are beverages such as drinking water (including carbonated drinks with added sugar), milk-flavoured drinks containing lactose, and fruit and vegetable juices, whether or not they contain added sugar.